USD/CAD leans bearish towards 1.3000 on downbeat options market signals

USD/CAD remains pressured around the lowest levels in a fortnight amid the sluggish European morning on Monday. That said, the Loonie pair seesaws near 1.3030 during the four-day downtrend amid the bearish bias of the options market traders.

One-month risk reversal (RR) on USD/CAD, a measure of the spread between call and put prices, dropped during the last two consecutive days, while also printing the weekly negative, per the data source Reuters. 

A call option gives the holder the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. That said, the weekly RR dropped to -0.130 by the end of Friday.

The options market signal also follows the latest USD/CAD RR on the daily, to -0.163 at the latest.

Considering the broad US dollar pullback, as well as the bearish options market signals, the USD/CAD pair may ignore the recent weakness in the oil prices, Canada’s main exports to lure the pair sellers.

Also read: USD/CAD stay pressured towards 1.3000 amid firmer oil, USD weakness ahead of US inflation